Willis Lease Finance Reports Strong Operating Growth Amid Shrinking Net Income
Willis Lease Finance Corporation (NASDAQ:WLFC) reported second-quarter results showing strong growth in its operating business, but net income fell by more than half. The company's lease rent revenue increased by 6.7% to $77.1 million due to an expanded portfolio and a gain on the sale of leased equipment rose 16.2%. Assets under management grew 21% year-over-year to $4.4 billion, driven in part by new investment fund partnerships with Liberty Mutual Investments and Blackstone Credit & Insurance. Despite these gains, net income attributable to common shareholders dropped from $58.9 million to $28.7 million due partly to a lack of the prior year's one-time gain on the sale of its BAML business and losses related to debt refinancing. Total revenue slightly declined by 0.8% as spare parts sales fell sharply, interest revenue dipped significantly, and administrative expenses rose. The company also saw increased institutional ownership with hedge fund holdings more than doubling from 11 funds to 27. However, short interest remains high at 22.05%, indicating continued skepticism among some investors.
Tickers: $WLFC
Topics: aircraft engines lease finance net income decline revenue growth